City Council — September 14, 2026

Sales and Use Tax Reporting

• Muni Services reported generating over $1 million in new and ongoing revenue for the city and Measure U district.
• The presentation highlighted that restaurants and food products comprise over 50% of sales tax receipts.
• Forecasts project a 1% increase for fiscal year 2026-2027 despite economic factors like tariffs and AI.
• The $1.09 million surplus was attributed to identifying underreporting businesses and correcting tax reporting errors.

Ex Parte Communications Report

• Council members reported on various meetings attended, including those regarding Proposition H, the aquatics facility, and Parks and Rec.
• Council Member Arona requested staff provide the current Verkata camera policy for review regarding AI capabilities and data security.
• The Council agreed to have staff provide the policy via memo or email for potential future action.

Resolution 26-1334 (Labor Contract)

• The Council adopted a resolution to impose the City’s Last Best and Final Offer for a three-year agreement with Teamsters Local 986.
• The offer includes a 4% annual cost-of-living increase and equity adjustments for three specific positions based on an RGS study.
• Staff and the City Manager cited recruitment challenges and fiscal sustainability as reasons for the proposed increases.
• The Union representative warned of a strike if the offer was imposed, noting that economic proposals originated from City staff.

Development Impact Fee Nexus Study

• The Council approved an agreement with Harrison Associates Inc. to conduct a nexus study and fee update.
• The study will evaluate 20-30 potential impact fees to ensure compliance with the Mitigation Fee Act.
• Staff noted that the last such study was conducted approximately 20 years ago and that fees apply only to new development demands.
• A corresponding budget adjustment was approved to authorize the Mayor to execute the agreement.

Closed Session

• The Council conferred with labor negotiators regarding the contract with Teamsters Local 986, with no reportable action taken.
• The Council conferred with legal counsel regarding existing litigation in the case of Edward St. George v. City of Solvang et al., with no reportable action taken.

Closed Session

Item 2A: Conference with Labor Negotiators

• The Council convened in closed session to confer with labor negotiators regarding the contract with Teamsters Local 986. The agency representative was Dave Fleischman, Assistant City Attorney. Upon returning to open session, the Assistant City Attorney reported that there was no reportable action taken on this item.

Item 2B: Conference with Legal Counsel (Existing Litigation)

• The Council convened in closed session to confer with legal counsel regarding existing litigation in the case of Edward St. George v. City of Solvang et al. (Case No. 25CB07234). Upon returning to open session, the Assistant City Attorney reported that there was no reportable action taken on this item.

Open Session

Presentation: Sales and Use Tax Reporting

• Mary De La Rosa of Muni Services (rebranded as Numo) presented a report on sales and use tax receipts. She noted that the company has generated over $1 million in new and ongoing revenue for the city and the Measure U district since beginning work. The presentation covered annualized percent changes in sales tax receipts, business segments (with restaurants and food products comprising over 50% of sales tax), and top sales tax generators. De La Rosa discussed forecasts for fiscal years 2025-2026 and 2026-2027, projecting a 1% increase for 2026-2027. She addressed economic factors such as tariffs, AI, and the "K-shaped" economy, noting that while tourism-dependent cities may face impacts from high gas prices and reduced travel, online sales and vehicle purchases remain stable. Council members asked questions regarding the forecasting models and the breakdown of the $1.09 million in surplus revenue, which De La Rosa attributed to identifying underreporting businesses and correcting errors in tax reporting.

Public Comment (Non-Agenda Items)

• Three members of the public addressed the Council: 1. Stephen Gerard Sadlowski: Requested that the Council consider a resolution declaring Solvang a "pre-born personhood city," citing the Dobbs decision and the city charter. 2. Denise Ellamine: Expressed opposition to Measure D, an $80 million bond for Santa Ynez Valley High School, citing concerns about the school board’s oversight track record and the financial burden on taxpayers. 3. Sue Turner Cray: Also opposed Measure D, arguing that the bond amount is excessive, the oversight committee is not independent, and the district’s leadership has prioritized non-essential projects over facility maintenance.

Item 5: Ex Parte Communications Report

• Council members reported on ex parte communications and meetings attended since the last session.
• Council Member Infante: Reported attending meetings regarding Proposition H (Allan Hancock College), the aquatics facility for Valley High School, the State of the City, Friends of the Library, SBCAG (Santa Ynez River Trail), and Parks and Rec.
• Council Member Cabello: Reported attending the Parks and Rec master plan meeting.
• Council Member Arona: Reported attending the State of the City, Rotary meetings, the Aquatics Foundation joint use agreement meeting, Parks and Rec public hearings, DRC meetings, and the Joint Planning Commission. She requested that staff provide the current policy regarding Verkata cameras for Council review to ensure it aligns with new AI capabilities and data security standards. The Council agreed to have staff provide the policy via memo or email for review, with a potential future agenda item if action is deemed necessary.
• Council Member Smith: Reported attending the Senior Center celebration, DRC meetings, the State of the City, and the PAWS fundraiser.
• Mayor Brown: Acknowledged a colleague’s birthday, thanked staff for the State of the City event and Visitor Center repairs, apologized for communication issues regarding Labor Day events and backflow device compliance, and reported attending various meetings including Parks and Rec, SBCAG, the State of the City, the Neil Taylor Nature Center, CRCC, and the Cal League of Cities conference.

Item 6: Consent Calendar

• The Council considered routine administrative matters. A motion was made and seconded to approve Items 6A through 6I as presented. The motion passed 5-0.

Item 7A: Public Hearing – Resolution 26-1334 (Labor Contract)

• The Council held a public hearing to consider adopting Resolution 26-1334, which would impose the City’s Last Best and Final Offer (LBFO) for a three-year agreement with Teamsters Local 986. The LBFO includes a 4% cost-of-living increase per year and specific equity adjustments for three positions (Assistant Planner, Development Building Technician, and Code Enforcement Officer) based on an independent compensation study by RGS.
• Staff Report: Dave Fleischman, Assistant City Attorney, explained that the City and Union reached an impasse. The City’s LBFO was rejected by the Union. The City has exhausted impasse resolution procedures. The Council’s options are to impose the LBFO or allow negotiations to continue. Imposing the LBFO allows the Union to return to the bargaining table immediately.
• Consultant Presentation: Karen Blakely of RGS described the methodology of the compensation study, which analyzed 11 comparable agencies to determine median salary and benefit rates. She noted that most positions were within market range, with three positions identified for equity adjustments.
• City Manager Comments: The City Manager provided context on recruitment challenges that prompted the study. He detailed non-salary benefits increases since 2015, including cafeteria match, holidays, housing allowance, safety allowance, uniform allowance, and longevity pay. He stated that while COLAs may not have kept pace with CPI, total compensation packages have increased significantly. He noted that management positions were undercompensated relative to the market, while represented staff were generally within a 5% range of the median. He urged the Council to impose the 4% increase to maintain fiscal sustainability.
• Public Comment:
• Jeff Lee (Teamsters Local 986): Stated that all economic proposals in the tentative agreement came from City staff, not the Union. He argued that benefits like housing and longevity pay are shared by non-represented staff who received larger raises. He noted that the Union’s bargaining unit will strike effective 9:00 AM the following morning if the LBFO is imposed.
• Candace LaBera (City Staff): Expressed disappointment at the impasse and the potential for a strike, emphasizing the desire for a fair resolution and the value of the workforce.
• A motion was made and seconded to adopt Resolution 26-1334 per staff recommendation. The motion passed 5-0.

Item 8A: Development Impact Fee Nexus Study

• The Council considered approving an agreement with Harrison Associates Inc. for a development impact fee nexus study and fee update, along with a corresponding budget adjustment.
• Staff Report: Cole Phillips, Engineering Technician, explained that the City reissued an RFP for the nexus study after initial proposals were deemed weak. Harrison Associates was selected based on a not-to-exceed amount and staff recommendation. The study will evaluate 20-30 potential impact fees, including parks, streets, and recreation, to ensure compliance with the Mitigation Fee Act and to identify revenue opportunities. The last such study was conducted approximately 20 years ago.
• Discussion: Council members discussed the scope of the study, the necessity of the study for legal compliance with fee collection, and the potential for expanding fee categories. The City Manager noted that mitigation fees can only be collected for new development demands, not existing overburdened systems.
• Motion: A motion was made and seconded to approve the agreement with Harrison Associates, authorize the Mayor to execute the agreement, and approve the corresponding budget adjustment. The motion passed 5-0.

Closing Comments and Adjournment

• Library Storage: Council Member Infante requested that staff investigate the possibility of installing a shed behind the library to store books, reducing the need for paid storage containers. The City Manager indicated that staff would work with the librarian to explore options within zoning and building code limits.
• Memorial for Joan Jamieson: Mayor Brown acknowledged the passing of Joan Jamieson, a former Solvang mayor, city council member, planning commissioner, and architectural review board member. Council members shared brief remarks honoring her contributions to the community. The Council presented a certificate to her family acknowledging the adjournment of the meeting in her memory.
• Adjournment: The meeting was adjourned at 8:08 PM.